THE REAL WORLD OF MONEY
Andrew Gause may just be the top man anywhere for the highest quality analysis into the world of money we all live in. Andrew is a currency historian, an internationally recognized expert on the United States monetary system. He’s written two books, “The Secret World of Money” and “Uncle Sam Cooks the Books”. You can order these books as well as speak to Andrew personally. As a One Radio Network listener, you’ll have highest priority in his phone time. His # is 800.468.2646
-In 2013, the IMF suggests a “Capital Levy” – a one time tax on investments and personal property, implemented before avoidance is possible, to help public treasuries. Such confiscation of wealth has been done before and will happen again in “dire financial emergencies”. E.g. US confiscation of gold, in Venezuala.
-Constitution is routinely ignored by today’s legal and regulatory framework. The gov takes, and you must sue to get property taken unjustifiably.
-Surge in Bitcoins – there’s no one to lean against the wind, no one doing central bank buffering services of selling when everyone’s buying, buying when everyone’s selling. Encryption hackers are demanding bitcoin as ransom, so lots of buying currently, and bitcoins are decentralized. Bitcoins are big in the East – they don’t trust banks, but do trust bitcoin.
-When you affect supply, you affect the nature of supply and demand. Validation of blocks is what creates bitcoins. Once all the bitcoins have been mined, who will validate the blocks? Paperizing and optioning bitcoins as a way to short bitcoins. Different classes of bitcoin introduced to solve scalability problem. Totally unregulated marketplace with no protection. If you want in, Andy’s advice is first start as small as you possibly can and see how it works. Are now 100 competitors to bitcoin.
-Bill in Congress now to rollback Dodd-Frank deregulation.
-Ex-FBI director Comey testimony tomorrow. Will he support obstruction of justice charges – highly unlikely, although all presidents do operate that way. They chose what they do and don’t want to prosecute.
-Meghan Kelly’s debut interview of Putin – she was no match for him. Putin knows politicians come and go, but the boys stay. The CIA can’t come up with a Russian IP? Did NBC leave in Putin’s bit about the CIA killed JFK to make him look crazy?
-The FED’s $4.5 trillion balance sheet includes: $1.8t MBS, $2.4t treasury debt, agency debt (Sallie Mae, Freddie Mac, Fannie Mae), $11b in gold stock (.8% of our GDP), $1.5t paper and coin.
-What is money? Economists couldn’t agree on a definition. Money vs. money market funds. Double-booking entries.
-Mark to market means they’re supposed to devalue assets on the books as they lose market value. But that’s not what is happening. E.g. cars kept on books at full value, even though they depreciate.
-Qatar, home to a US airbase, is perhaps the biggest producer in the whole world of natural gas. Proposed NG pipeline from Qatar through Saudi Arabia, Syria, Jordan to Turkey. Would compete with proposed Russian-backed Iran-Iraq-Syria-Europe NG pipeline. Is the Syrian war about competing pipelines?
-David asks if the deep state we talk of now is the same one Woodrow Wilson referred to. Wilson was signer of legislation to create the Federal Reserve in 1913. He knew all about the boys. Sergeants run the army, not the generals. The bureaucrats control the direction of the government.
-South Korea halts deployment of US anti-North Korea ICBMs. China’s influence? Trade deal with Korea gave US the right to do banking there. Fosters anti-US sentiment. Overt Americanization of Korea is a this-century phenomenon; used to be covert. CitiBank Korea – is worst bank in world in terms of consumer complaints. Koreans are resentful.
-Liquidity crisis in China. The more yuan there are, the less they’re worth. China has freely allowed borrowing of money to expand. China has monetized so much debt that the value of the yuan would evaporate if all debt was monetized.
-All the problems in the world are about money and who gets to control currencies.
-With a weakening dollar, Treasury Bond yield is at lowest point this year.
-Put the bulk of your wealth into physical tangibles to reduce your risk from the vagaries of the financial system. Physical money is the only thing that exempts you from the risk of fiduciary money. Save money in the form of real money. No counterparty risk and a secure form of wealth.
-Morgan recommends Eustace Mullins’ pamphlet “The 5 Trillion Cold War Hoax”. Free at http://whale.to/b/mullins6.html. Andy recommends all of Mullins’ books. Missile crisis a hoax. Cuba-Rockefeller links, Chase bank branch in the Kremlin since 1968. Morgan says there’s an open sewer smell from the TV; the terrorists are the media.
-Thomas Edison quote: if the US can issue bonds, it can issue bills. Bonds allow usurers to collect twice the bond amount plus 20%. Edison recognized there’s a better way to do this. But he was a greenbacker, said we didn’t need to back money with gold. “Gold is a relic of Julius Ceasar.” Edison wanted to pump out interest-free currency. He and Henry Ford tried to end Fed Reserve ability to charge interest on money creation. Occurred at same time as Weimar Republic inflation of early 1930’s, so Edison was discredited.
-History of US presidents getting shot for trying to stop paying Fed Reserve for our money.
-FRED – St. Louis FED Report. Are 3 Steps to inflation: create money, get people to spend it (money velocity, now at all time low), resource slack. Total non-farm job openings (labor turnover) number is at an all time high. Are more job openings now than people to fill them. Resource slack has been absent, but newly deployed money is being spent now and has built demand. Wages have been flat, but are going up. Confidence in US economy now. Factory resource slack is also tightening – we’re at high capacity utilization. Monetary velocity amplifies money in circulation. Money with zero maturity (MZM) is also at an all time high. Once people start to spend MZM, inflation will rocket. Rising prices will start spending, and the cycle of rising prices starts.
-To benefit from impending inflation, position yourself in investments that will raise in value.
-US has had no productivity growth, automation notwithstanding. Has an overwhelming amount of unfunded pension and government benefit obligations. Deregulation of banking will be stimulative this summer. Rich will get richer, middle disappears, poor gets poorer.
-When depositing money in the bank, people don’t realize they’re accepting a risk.
-Trump has to get corporate tax down to 15% as the first step in his economic program.
National Intelligence Agency Dan Coates says he has never been pressured to intervene or interfere in shaping intelligence in a political way.
-Will Trump reverse the loosening with Cuba? As part of his changes in Cuba policy, President Obama had opened a secret channel with Cuba regarding policy discussions. Talking or communicating with a foreign county didn’t make him a traitor. Why can’t Trump administration have open communication with Russia?
-Inflationary surge will be starting very soon and we’ll see double digit interest rates. All the components are in place, just need a turn in confidence.
-Cheap low cost energy will fuel expansion and inflation.
-Of all electricity generated in the US, electricity is 33%, coal 30%, wind 5%, solar .9%.
-Christopher says it’s the time now to use capital flows coming to US to lend to infrastructure before things crash. Cash will seek out tangible assets and drive up their price.
Andrew Gause and the Real World of Money, June 7, 2017 Hour One
Andrew Gause and the Real World of Money, June 7, 2017 Hour Two